Police: "1.414 trillion KRW of embezzled funds from Osstem Implant deemed recoverable"

Nam Gu-jun, Chief of the National Investigation Headquarters at the National Police Agency. / Photo by Jin-hyeong Kang aymsdream@

[Asia Economy Reporter Lee Gwan-joo] Regarding the Ostem Implant case, the largest embezzlement case in history involving company funds, the police have recovered 141.4 billion KRW out of 221.5 billion KRW and are tracking additional criminal proceeds.

Nam Gu-jun, head of the National Investigation Headquarters at the National Police Agency, stated at a press conference on the 24th, "The total embezzled amount increased significantly during the investigation, but we believe that recovery of 141.4 billion KRW in damages is possible," adding, "We are continuing the investigation into accomplice involvement and the analysis of the usage of the funds."

On the 14th, the police arrested and sent to prosecution Lee (45), an employee of Ostem Implant and the suspect in the embezzlement case. The police, who began recovering the embezzled funds, seized all 851 kg of gold bars worth approximately 68.1 billion KRW in cash value, and applied for pre-indictment seizure and confiscation orders on 38.4 billion KRW including 33.5 billion KRW returned by Lee, which the court approved. 76.2 billion KRW was lost in stock investments, and 3.9 billion KRW is still being traced.

Separately, the police are also investigating Lee’s family for charges of concealing criminal proceeds. Head Nam explained, "Whether the family was involved or if there are other accomplices is an ongoing investigation."

The real estate speculation allegations stemming from the Korea Land and Housing Corporation (LH) that surfaced in March last year are nearing conclusion. Head Nam stated, "So far, we have cracked down on 1,660 cases involving 6,038 people, sent 4,127 to prosecution, and arrested 62," adding, "We have applied for pre-indictment seizure and confiscation of assets worth approximately 150.6 billion KRW." Regarding investigations of members of the National Assembly, four were sent to prosecution, one was arrested, and investigations on three others are ongoing.